Carkitt Inc. manufactures spellbooks for students. The three models it produces are Basic, Intermediate, and Hermione...
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Carkitt Inc. manufactures spellbooks for students. The three models it produces are Basic, Intermediate, and Hermione Level. The information for these products is shown below: Basic 25.000 $350 $250 Units sold Selling price Variable costs The company's fixed costs are $7,500,000. Intermediate | Hermione Level 5,000 $800 $500 10,000 $500 $300 1.) What is the company's sales mix for the three products? Round to 3 decimal places. 2.) What is the company's weighted-average contribution margin per unit? 3.) What is the company's break-even point in total units? 4.) How many units of each product must the company sell to break-even? 5.) Prepare a schedule to prove that your answer in requirement 4 does cover all the company's costs and will allow it to break-even. Carkitt Inc. manufactures spellbooks for students. The three models it produces are Basic, Intermediate, and Hermione Level. The information for these products is shown below: Basic 25.000 $350 $250 Units sold Selling price Variable costs The company's fixed costs are $7,500,000. Intermediate | Hermione Level 5,000 $800 $500 10,000 $500 $300 1.) What is the company's sales mix for the three products? Round to 3 decimal places. 2.) What is the company's weighted-average contribution margin per unit? 3.) What is the company's break-even point in total units? 4.) How many units of each product must the company sell to break-even? 5.) Prepare a schedule to prove that your answer in requirement 4 does cover all the company's costs and will allow it to break-even.
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1 The companys sales mix for the three products can be calculated by finding the percentage of each ... View the full answer
Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
Posted Date:
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